Remodeling Scams, Complaints: What Homeowners Need to Know
Wayne Porter
Scams have always shadowed the real estate market, but lately they feel closer to home. One of the biggest drivers is the region’s remodeling boom. Good for the economy and the local housing stock because it breathes new life into older homes. But it has a dark side. It has created an environment where scammers thrive. Homeowners who slow down, research their contractors, and understand true remodeling costs are far better positioned to protect their investment – and prevent a dream project from becoming a financial loss.

NETAR President
There are ample stories about unfinished projects, shoddy work, lawsuits, and homeowners left with empty promises to affirm the situation. One local example is the suit against Joe Wood of Wood Construction and Remodeling, formerly located in Johnson City. He was convicted and sentenced to 10 months of electronically monitored home detention. The sentence was contingent on a full restitution for his victims.
The big picture is that contractor disputes are rising in Northeast Tennessee, and the reasons reflect today’s housing realities.
The average existing home sold in the region is roughly 44 years old, older than the national median of 36 years. Aging homes require repairs, upgrades, and modernization, and many new residents are also eager to update older properties to match their lifestyle expectations.
At the same time, limited housing inventory has pushed more residents toward remodeling instead of moving. Aging-in-place upgrades, kitchen, and bath, outdoor living projects, basement conversions, and energy-efficiency improvements are all growing categories.
These projects come with significant price tags. According to industry reports, a Northeast Tennessee whole-house remodel typically costs $15 to $150 per square foot depending on the scope of the project. Jobs involving structural changes or high-end finishes can climb to $100 to $250 per square foot or more. A complete gut-and-remodel often ranges from $100,000 to $200,000+.
With that kind of money on the table, it’s no surprise that scammers are paying attention.
Tri-Cities has many reputable, highly skilled contractors who take pride in their work. But the surge in remodeling demand has also attracted less-qualified operators who make big promises but deliver substandard work – or no work at all. Older homes magnify the damage with outdated wiring, aging plumbing, inadequate ventilation, and structural surprises that may be common in homes built before the 1990s. These require experience, planning, and proper permits. Cutting corners can leave homeowners with unsafe renovations and costly repairs. Here’s some of the red flags consumer-protection experts point to, as a few core warning signs:
- No physical office or vague addresses.
- Unwillingness to show proof of licensing or insurance.
- Large upfront deposits beyond state limits.
- Cold call “discounts” or claims of leftover materials.
- Contractor-arranged financing, a fast-growing source of predatory lending.
- Suspicious online reviews, often paid for or written internally.
- Refusal to provide a detailed written contract.
- Pressure to approve work before the job is complete.
Taking time to verify credentials, check references, seek multiple bids, and read contracts closely remains the strongest protection.
The National Association of Realtors® (NAR) offers a reliable consumer resource at Houselogic.com, with guides on avoiding scams, screening contractors, understanding contracts, and managing renovation projects from start to finish. It’s a helpful starting point for anyone preparing to update an aging home. The Houselogic advice on remodeling can be found on its website at https://lookforther.realtor/remodel/
NETAR is the voice for real estate in Northeast Tennessee. It is the largest trade association in the Northeast Tennessee, Southwest Virginia region, representing over 1,800+ members and 100+ business partners involved in all aspects of the residential and commercial real estate industries. Weekly market reports and information for both consumers and members are available on the NETAR website at https://netar.us